Food and Beverages

Cannabidiol Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : April 2024

Format :Pdf Ppt Xls

Report ID:KR628

Author : Antriksh P.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 6,997.9 Million

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Forecasted Value (2031)

USD 20,691.5 Million

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CAGR (2024 - 2031)

14.53%

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Fastest Growing Region (2024 - 2031)

Asia Pacific

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Largest Region

North America

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By Type

Hemp, Marijuana

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By End-Use

Pharmaceutical, Food and Beverage, Personal Care & Cosmetic, Dietary Supplements, Others


Global Cannabidiol Market Size

The global Cannabidiol Market was valued at USD 6,997.9 million in 2023 and is projected to reach USD 20,691.5 million by 2031, growing at a CAGR of 14.53% from 2024 to 2031. Increasing legalization and regulatory support for CBD products in various regions are driving market growth. As governments around the world revise their policies regarding cannabis-derived products, the CBD market is experiencing a surge in demand and investment. Countries such as Canada, parts of the United States, and several European nations have legalized CBD for medical and/or recreational use, opening up new opportunities for businesses in this sector. Regulatory clarity and support are essential for CBD market growth, as they provide a framework for the manufacturing, distribution, and marketing of CBD products. Moreover, the legalization of CBD in several regions fosters consumer confidence and mainstream acceptance, thereby fueling market expansion. Companies operating in the market are strategically positioning themselves to capitalize on these regulatory shifts, investing in research, product development, and market expansion to meet the growing demand for CBD products.

Cannabidiol (CBD) is a naturally occurring compound found in the cannabis plant. CBD is commonly extracted from hemp, a variety of cannabis with low tetrahydrocannabinol (THC) content, making it legal in many regions. CBD has gained immense popularity for its potential therapeutic benefits, including pain relief, anxiety reduction, and anti-inflammatory properties. It is available in various forms such as oils, tinctures, capsules, edibles, and topical, among others. Additionally, CBD has found applications in diverse industries, including healthcare, wellness, beauty, pet care, and food and beverages, reflecting its versatility and extensive market potential.

Analyst’s Review 

The cannabidiol (CBD) market is experiencing significant growth globally, driven by increasing consumer awareness, expanding legalization, and growing acceptance of CBD products. With the relaxation of regulatory barriers in numerous regions, the market has witnessed a proliferation of CBD-based products across various industries, including healthcare, wellness, beauty, and pet care. The market outlook remains positive, with continued legalization efforts and ongoing research driving product innovation and expansion. However, challenges such as regulatory uncertainties and quality control issues persist, requiring industry stakeholders to navigate carefully to sustain growth and ensure consumer trust in CBD products.

Cannabidiol Market Growth Factors

The rising popularity of CBD-infused beauty and skincare products reflects a growing consumer preference for natural and holistic skincare solutions. CBD, known for its potential anti-inflammatory and antioxidant properties, is increasingly being incorporated into skincare formulations to address issues such as acne, inflammation, and aging. Beauty brands are capitalizing on this trend by launching CBD-infused serums, creams, masks, and other skincare products, attracting consumers seeking alternatives to traditional skincare ingredients. The rise of CBD in beauty and skincare products expands market opportunities and contributes to the mainstream acceptance of CBD as a versatile ingredient with diverse applications beyond the wellness sector.

Regulatory frameworks governing CBD products remain fragmented and uncertain in several regions, posing challenges for market participants concerning compliance, distribution, and market entry. Despite increasing legalization efforts, inconsistencies in regulations create complexities for CBD businesses operating across different jurisdictions. Unclear guidelines regarding CBD labeling, dosage, and advertising exacerbate compliance challenges, thereby hindering market growth and consumer trust. Additionally, the lack of standardized testing methods and quality control measures raises concerns regarding product safety and efficacy, underscoring the need for robust regulatory frameworks to ensure consumer protection and industry integrity.

Cannabidiol Market Trends

The expansion of CBD product offerings in pet care reflects a growing trend toward natural and alternative remedies for pet health and wellness. Pet owners are increasingly turning to CBD products to address issues such as anxiety, pain, inflammation, and mobility problems in their pets. CBD-infused pet treats, oils, and supplements are gaining immense popularity due to their perceived efficacy and safety when compared to traditional medications. As a result, pet care brands are diversifying their product portfolios to include CBD offerings, tapping into a lucrative market segment driven by pet owners' inclination toward holistic pet care. The surging usage of CBD in pet care enhances animal welfare and presents new revenue opportunities for businesses in the pet industry.

Segmentation Analysis

The global cannabidiol market is segmented based on type, end-use, and geography.

By Type

Based on type, the market is segmented into hemp and marijuana. The hemp segment dominated the market with a share of 53.95% in 2023 on account of its high CBD content and legal status in numerous regions. Hemp-derived CBD products have gained significant traction due to their non-psychoactive nature and perceived health benefits, which is driving its demand in various industries such as healthcare, wellness, beauty, and pet care, thereby supporting segment uptake.

By End-Use

Based on end-use, the market is classified into pharmaceutical, food and beverage, personal care & cosmetic, dietary supplements, and others. The personal care & cosmetic segment is anticipated to review the highest CAGR of 15.96% over the forecast period as a result of increasing consumer demand for natural and wellness-focused skincare solutions. CBD-infused beauty and skincare products are increasingly gaining popularity due to their potential anti-inflammatory and antioxidant properties, which appeal to consumers seeking effective yet gentle skincare formulations. Beauty brands are capitalizing on this trend by incorporating CBD into their products, thereby stimulating the growth of the personal care & cosmetic segment.

Cannabidiol Market Regional Analysis

Based on region, the global cannabidiol market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Cannabidiol Market Size & Share, By Region, 2024-2031

North America secured the largest market share of 31.54% in 2023 due to the progressive legalization of CBD products in various states and the presence of established CBD companies. The region has witnessed a surge in consumer demand for CBD products across diverse industries, including healthcare, wellness, beauty, and pet care, thereby contributing to its leading position in the market. Moreover, the robust regulatory framework and evolving consumer preferences toward natural remedies have fueled the growth of the CBD market in North America.

Europe is likely to experience significant growth at a 14.25% CAGR between 2024 and 2031 owing to increasing regulatory support for CBD products and growing consumer acceptance of CBD across the region. With the relaxation of regulations in numerous European countries, the market for CBD products is poised to witness substantial expansion, attracting investments and driving product innovation. Additionally, the rise of CBD-infused products in industries such as healthcare, wellness, beauty, and food and beverages contributes to market growth in Europe, positioning the region as a key market for CBD in the coming years.

Competitive Landscape

The global cannabidiol market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Cannabidiol Market

  • ENDOCA
  • Cannoid, LLC
  • Medical Marijuana, Inc.
  • Folium Europe B.V.
  • Canopy Growth Corporation
  • Elixinol
  • NuLeaf Naturals, LLC
  • Isodiol International, Inc.
  • PharmaHemp
  • The Cronos Group

Key Industry Developments in Cannabidiol Market

  • March 2024 (Launch): Cronos Group launched Lord Jones Chocolate Fusions, marking its inaugural venture into the chocolate edibles segment catering to discerning adult cannabis consumers.

The global Cannabidiol Market is segmented as:

By Type

  • Hemp
  • Marijuana

By End-Use

  • Pharmaceutical
  • Food and Beverage
  • Personal Care & Cosmetic
  • Dietary Supplements
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
CHOOSE LICENCE TYPE
CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global cannabidiol market is projected to reach USD 20,691.5 million by 2031, growing at a CAGR of 14.53% from 2024 to 2031.
How big is the cannabidiol industry in 2023?
The cannabidiol (CBD) market is experiencing significant growth globally, driven by increasing consumer awareness, expanding legalization, and growing acceptance of CBD products.
Top manufacturers of cannabidiol market are ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Folium Europe B.V., Canopy Growth Corporation, Elixinol, NuLeaf Naturals, LLC, Isodiol International, Inc., PharmaHemp, The Cronos Group, and others.
Asia-Pacific is the fastest growing region with the CAGR of 15.59% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 4,976.0 million.
By type, hemp will hold the maximum share in the cannabidiol market with the revenue value of USD 10,821.6 million in 2031.
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